Shivaji vs Divisional Manager United India ...

The Supreme Court held that under Section 163A of the Motor Vehicles Act, 1988, the insurer cannot raise a defense of negligence against the claim for compensation, as this would contradict the legislative intent of providing final compensation without fault liability. The Court restored the Tribunal's award of Rs 4,60,800 to the appellants, emphasizing that the deceased driver, being the tortfeasor, does not preclude compensation for the legal heirs. The appeal was allowed, and the High Court's judgment was set aside.